Ok I like to move my pictures around from time to time and PicaJet likes to reimport them as new photos for some reason when I do this. Things started to get REALLY slow as a result.

As a workaround I created a new album and reimported all my pictures from scratch. This would be fine however only half of my categories were recreated from my original album. How do I import the rest of them?

OK so I created another album and copies over teh Categories.tdi Categories.idi and then scanned my watched folder for new pictures. Now the album appears to be stable.

One more thing though. The categories are not fully populated. For example when I click the sunsets category I can only see 1 sunset picture when there are supposed to be 5. Is there another file that controls this feature?

Euraka!!! I have found it.. Well not really but this is a pretty good work around.

It seems that picajet marks your files when you save categories to them. So if you create a new album with a file from an old album that had categories on them it will REMEMBER the categories. You can also have it remember the category structure.

I created a dummy.jpg file that I manally add to each category. When I want to create a new album I can then imoport this one file and VOILA all my categories come back!!!

This is not the solution I was looking for but it good enough workarond until they add this option in the full version.